W W W . C E N T R E X M E T A L S . C O M . A U
Annual Report (cid:1205)(cid:1203)(cid:1205)(cid:1204)
ASX : CXM
Contents
Executive Chairman’s Report
Managing Director’s Report
Mining Exploration Entity Annual Reporting Requirements
Directors’ Report
Lead Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
3
5
6
100
211
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233
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255
26
433
44
488
Page | 2 – 2021 Annual Report
CChairman’s Report
Dear Shareholders,
On behalf of the Centrex Board, I am pleased to present
the Company’s Annual Report for financial year 2021.
I am excited! Since I became Executive Chairman of
Centrex in December 2019, and despite the difficulties of
lockdowns in various States of Australia, I am pleased to
report substantial progress has been made by the
Company, particularly with Centrex’s flagship Ardmore
Phosphate Project, an environmentally-enhanced
project with substantial benefits to agriculture.
Highlights:
- Mr Robert Mencel, MBA (Tech Man), Grad Dip Mgt,
B.Eng (Min Eng) appointed as CEO
- Mr Peter Hunt, FCA appointed as Chairman
- First phase of mining of the Ardmore phosphate
project completed at low cost
- Successful capital raising completed
I was particularly happy to see mining commence at the
Ardmore project earlier this year, with approximately
27,000 tonnes of ore produced from the Ardmore South
Deposit at a very attractive cost. This ore is intended to
be sold to farmers and fertiliser manufacturers in the
Australian market, and only minimal additional crushing
and bagging will be required to achieve further sales.
(The revenue from this operation was not previously
included in the Ardmore DFS for the main Ardmore
project, which is designed to upgrade Ardmore ore to
produce a higher grade phosphate product for sale for
manufacture of superphosphate etc). Thanks especially
to Centrex’s staff for their sterling efforts in carrying out
their duties to achieve this great result.
A small amount of this production has been sold and
interest has been shown in purchasing more. We
anticipate demand for this as-mined ore will increase in
future as initiatives the Company is taking increases
awareness regarding availability and the advantages of
the product, which is an environmentally friendly, high
grade, low impurity fertilizer.
This mining operation has also produced data that was
available to be incorporated in the revision of the
previously-completed Optimised Definitive Feasibility
Study for the main Ardmore project so as to make
available more accurate projections for Centrex to
determine the optimal implementation plan for the
Ardmore project.
Work also commenced on opportunities aimed at
lowering the already-modest carbon footprint from the
Ardmore project. The Ardmore rock phosphate, because
of its high grade and low impurities, can contribute to the
reduction of greenhouse gases by promoting increased
plant growth. Also, the Ardmore phosphate ore has a
relatively low carbon footprint because the ore requires
only minimal processing after mining, reducing typical
on-site energy requirements. In addition, in an effort to
minimise the Ardmore project’s greenhouse emissions,
work during the year also included an assessment of the
cost of replacing the proposed diesel generators with a
renewable energy system comprising solar generation
combined with energy storage.
Work also continued on efforts to achieve increased
revenues
including
investigating additional existing markets and also some
interesting new potential commercial opportunities.
the Ardmore project,
from
In August 2021, the outstanding Updated Definitive
released,
Feasibility Study
confirming the main Ardmore Phosphate Rock
Project profitability and robustness.
results were
(DFS)
Project Net Present Value (NPV) of A$207m
using a 7% discount factor
Pre-tax IRR of 52% and a payback period of
less than 2 years.
Being a representative of Centrex’s major shareholder
(Dapop Pty Ltd), seeing the Company progress the
Ardmore projects to full sustainable production is an
important target that I see will greatly enhance
Centrex’s financial position in the coming years. (As an
example of our faith in the substantial prospects of the
Company going forward, this year Dapop provided $1m
of funding to help progress Centrex’s projects).
We have recently seen substantial changes which are
positive to Centrex generally, and in particular to
Centrex’s wholly-owned Ardmore rock phosphate
projects. Over the reporting period, the price of
fertilizers manufactured from rock phosphate have had
significant rises, and while the increase in prices has
been partly been due to worldwide demand because of
good plant growing conditions, the traded price of rock
phosphate has also experience substantial rises. The
weakening of the Australian dollar has had a positive
impact on the Ardmore project.
2021 Annual Report - Page | 3
financial
Recent preliminary work on modelling
outcomes
from the main Ardmore project using
projected exchange rates, commodity prices and other
parameters indicates the project is still very attractive.
Work is still ongoing on the Oxley Potassium Project with
testing of some new concepts that we anticipate may
help with the liberation of potassium from the Oxley ore.
Gold exploration is also proposed at the Goulburn
gold/base metal project with a program planned to be
carried out in the first half of this year and after the
company’s geologists return from the Ardmore project.
It was also personally pleasing to me to be able to help
facilitate the appointment of Robert Mencel, an
experienced phosphate company executive and project
developer, as Chief Executive Officer (now Managing
Director), and also Mr Peter Hunt as Chairman. I would
like at this point to thank the directors and staff of
Centrex for their fantastic efforts at progressing Centrex’s
projects while at the same time substantially reducing
the Company’s expenditure. Without their help, we
would not be in the position we are today.
Shareholders may recall the company completed a
Rights Issue and several placements during 2020 which
raised valuable funding to continue work on the
Company’s projects. I personally wish to thank everyone
who generously supported Centrex and contributed
funds during the year. We understand your financial
contributions are valuable to you, and we are doing our
best to use Centrex’s cash resources wisely.
On this point, I am pleased to advise there has been a
very substantial reduction in the administration costs of
the Company, and in particular the staff salary costs and
Directors fees, which are significantly lower than for the
preceding period.
We are grateful for Shareholders patience and support,
and we are planning for substantial progress during the
course of this year, particularly on the Company’s main
flagship Ardmore rock phosphate project.
Kindest regards
MMr Graham Chrisp
Former Chairman
Page | 4 – 2021 Annual Report
MManaging Director’s
Report
The Company has several important projects, among
them its 100% owned flagship Ardmore Phosphate Rock
Project near Mount Isa in Queensland.
ARDMORE PHOSPHATE ROCK PROJECT, QLD
The Ardmore Project is the highest-grade phosphate rock
project in Australia.
During the 2020/21 financial year, the phosphate rock
price increased significantly. Between June 2020 and
June 2021, the 70%BPL benchmark price (North Africa)
increased from $75 to $125 per metric ton, significantly
increasing the project’s potential value.
To realise this value for shareholders, the company is
developing the project in a staged approach.
Commence and promote Direct Application
Complete the trial plant and progress pre-
1.
Phosphate Rock (DAPR) sales
2.
qualification trial shipments
3.
(DFS) for the main Ardmore project.
Refresh the 2018 Definitive Feasibility Study
In February 2021, The Company mined and stockpiled
approximately 27,000 tonnes of phosphate rock at
Ardmore. The company has been working with Mount Isa
based contractor JDR Mining and Civil Pty Ltd to conduct
crushing, screening, and bagging trials. The trial’s aim is
to determine Ardmore’s rock crushing, screening, and
bagging characteristics. These characteristics will be
used to confirm the processing cost. The final product
will be bagged into 1 tonne bulka bags, suitable for back
loading from Mount Isa to the Australian East Coast. The
trial is expected to be complete in August 2021.
In addition, work continued on the main Ardmore
phosphate project. During 2019 a process plant was built
at the Ardmore site. The process plant is largely
complete, however non-process infrastructure requires
completion and the plant commissioned. Subject to
suitable funding, the process plant is expected to take
three months to complete and commission. The process
plant will then be used to prepare trial product parcels
for the main Ardmore phosphate project. The Company
expects to produce 5 x 5,000 tonne trial shipment parcels.
These will be sent to various customers for use in single
superphosphate production. A 5,000 tonne parcel will
allow the customers to test their plant’s production using
Ardmore ore.
It is anticipated trials are suitable, it will result in
marketing contracts for the main Ardmore project with
the fertilizer manufacturers..
A Definitive Feasibility Study (DFS) was completed in
2018. GR Engineering Services Ltd has been engaged to
refresh the capital and operating costs for the project.
This work is expected to be completed by the end of July
2021 and will be used to update the projects current Net
Present Value.
Subject to the results of the DFS, the Company will
commence discussions with potential customers for off-
take sales agreements and progress project funding
options.
OXLEY POTASH PROJECT, WA
The Company continues to review development options
for its Oxley Potassium Feldspar Project in Western
Australia. Representative Oxley ore samples have been
collected for new metallurgical test work. The work will
test the ability to convert Oxley’s ore structural K into to
a soluble plant available K using a relatively simple low-
cost alkali-hydrothermal treatment. If successful, it
would demonstrate the potential to create a novel low-
cost Potassium fertilizer. The test work is expected to be
completed by October 2021.
GOULBURN GOLD/BASE METALS PROJECT, NSW
At Goulburn, work was carried out to target areas for
prospective gold mineralisation and negotiate future
necessary landholder access agreements.
Kindest regards
Mr Robert Mencel
Managing Director
2021 Annual Report - Page | 5
Interest
%
100
100
100
100
100
100
100
Application
MMining Exploration Entity Annual
Reporting Requirements
LIST OF TENEMENTS IN WHICH THE GROUP HAS AN INTEREST
TENEMENT LIST
Location
Licence
number
AS AT 30TH JUNE 2021
Description
Held by:
ML 5542
Ardmore Phosphate Rock Project
Queensland
EPM 26551
Ardmore EPM 26551
EPM 26568
Ardmore EPM 26568
EPM 26841
Ardmore EPM 26841
Western Australia
E70/4318
Oxley C
New South Wales
EL 7388
EL 7503
Goulburn
Archer
Northern Territory
ELA 32048
Northern Territory ELA 32048
CPhos1
CPhos1
CPhos1
CPhos1
CPot2
LM3
LM3
CQld4
Wholly owned subsidiary of Centrex Metals Limited:
1 Centrex Phosphate Pty Ltd
2 Centrex Potash Pty Ltd
3
Lachlan Metals Pty Ltd
4 Centrex QLD Exploration Pty Ltd
Page | 6 – 2021 Annual Report
AANNUAL REVIEW OF MINERAL RESOURCES AND ORE RESERVES
The information included in the tables below was prepared in accordance with the JORC Code 2012. The Company
confirms that it is not aware of any new information or data that materially affects the information included in the table
and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not
changed.
POTASSIUM ORE MINERAL RESOURCES BY AREA
AS AT 30TH JUNE 20211
Location
Resource
Classification
Tonnage
(Mt)
Oxley Potassium
Project
Measured
Indicated
Inferred
Total
-
-
154.7
154.7
Head Grade
K2O (%)
Cut-off grade K2O (%)
-
-
8.3
8.3
-
-
6.0
6.0
PHOSPHATE ORE MINERAL RESOURCES BY AREA
AS AT 30TH JUNE 20211
Location
Resource
Classification
Tonnage
(Mt)
Ardmore
Phosphate Rock
Project
Measured
Indicated
Inferred
Total
3.3
11.1
1.7
16.2*
* Totals may not add precisely due to rounding.
Head Grade
P2O5 (%)
Cut-off grade P2O5 (%)
29.8
27.4
26.8
27.8
16.0
16.0
16.0
16.0
PHOSPHATE ORE RESERVE ESTIMATE
AS AT 30TH JUNE 20211
Ore Reserve Category
Probable
Proven
Total Ore Reserves
Tonnage
(Mt)
7.3
2.8
10.1
P2O5 (%)
30.2
30.3
30.2
2021 Annual Report - Page | 7
CCOMPARISON OF ANNUAL MINERAL RESERVES AND RESOURCES STATEMENT TO THE PRIOR YEAR
The table below summarises the changes that took place as far as the Group’s mineral resources and reserves are
concerned. The information contained in this table should be read in conjunction with the detailed resource and reserve
information provided above.
Location
Potassium
Oxley
Phosphate
Ardmore
Ardmore
Resource or
Reserve
Tonnage (Mt)
30/6/2021
30/6/20220
Notation
Resource
154.7
154.7
No change.
Resource
Reserve
16.2
10.1
16.2
10.1
No change.
No change.
SUMMARY OF GOVERNANCE ARRANGEMENTS AND INTERNAL CONTROLS IN PLACE FOR THE
REPORTING OF MINERAL RESOURCES AND ORE RESERVES
Mineral Resources and Ore Reserves are estimated by suitably qualified consultants in accordance with the JORC Code,
using industry standard techniques and internal guidelines for the estimation and reporting of Ore Reserves and Mineral
Resources. These estimates and the supporting documentation are then reviewed by suitably qualified Competent
Persons from the Company.
All Ore Reserve estimates are prepared in conjunction with feasibility studies which consider all material factors.
The Mineral Resources and Ore Reserves Statements included in the Annual Report are reviewed by suitably qualified
Competent Persons from the Company prior to its inclusion.
CROSS REFERENCING OF THE RESOURCES ANNOUNCMENTS
For more detail regarding the Oxley resources please see the announcement of 8th March 2016.
http://www.asx.com.au/asxpdf/20160308/pdf/435nrchjm48mjx.pdf
For more detail regarding the Ardmore resources please see the announcement of 1st June 2018.
https://www.asx.com.au/asxpdf/20180601/pdf/43vgxdjlpsgcwb.pdf
For more detail regarding the Ardmore reserves please see the announcement of 8th October 2018.
https://www.asx.com.au/asxpdf/20181008/pdf/43z1q8nvm95k58.pdf
Page | 8 – 2021 Annual Report
CCOMPETENT PERSONS STATEMENT
The information in this report relating to Exploration Results (contained in the CEO’s report) is based on information either
compiled or reviewed by Mr Alastair Watts who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Watts
is the General Manager Exploration of Centrex Metals Limited. Mr Watts has sufficient experience, which is relevant to the
style of mineralization and type of deposit under consideration and to the activity, which he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves”. Mr Watts consents to the inclusion in the report of the matters based on his information in the
form and context in which it appears.
The information in this report relating to the Mineral Resources of the Oxley Potassium Project is based on and accurately
reflects information compiled by Ms Sharron Sylvester of OreWin Pty Ltd, who is a consultant and adviser to Centrex Metals
Limited and who is a Member of the Australian Institute of Geoscientists (RPGeo). Ms Sylvester has sufficient experience
relevant to the style of mineralisation and type of deposit under consideration and to the activity she is undertaking to qualify
as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves”. Ms Sylvester consents to the inclusion in the report of the matters based on this information in
the form and context in which it appears.
The information in this report relating to Mineral Resources of the Ardmore Phosphate Rock Project is based on and
accurately reflects information compiled by Mr Jeremy Clark of RPM, who is a consultant and adviser to Centrex Metals
Limited and who is a Member of the Australian Institute of Geoscientists and AusIMM. Mr Clark has sufficient experience
relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify
as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves”. Mr Clark consents to the inclusion in the report of the matters based on this information in the
form and context in which it appears.
The information in this report that relates to Ore Reserves is based on information compiled by Mr Ben Brown, a Competent
Person who is a Member of The Australasian Institute of Mining and Metallurgy. Ben Brown is employed by Optima Consulting
and Contracting Pty Ltd, an external independent consultancy. Ben Brown has sufficient experience that is relevant to the
style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the ‘Australian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Ben Brown consents to the inclusion in the report of the matters based on his information in
the form and context in which it appears.
2021 Annual Report - Page | 9
Directors’ Report
For the Year Ended 30th June 2021
The Directors present their report together with the consolidated financial report of Centrex Metals Limited (“Company”)
and its controlled entities (“Group”), for the financial year ended 30th June 2021 and the auditor’s report thereon.
SSection
CContents of Directors’ Report
11
22
33
44
55
66
77
88
99
110
111
112
113
114
115
116
1177
DDirectors and tthe CCompany Secretaryy
EExecutives considered to be Key Management Personnel
DDirectors’ Meetings
CCorporate Governance Statement
RRemuneration Report (audited)
PPrincipal Activity
OOperating and Financial Review
DDividends
EEvents subsequent to year end
LLikely Developments
DDirectors’ IInnterests in Shares,, OOptions aand Rights
SShare Rights
IIndemnification and insurance of Directors and Officers
EEnvironmental Regulation and Performance
NNon--aaudit services
RRounding
LLead Auditor’s Independence Declaration
Page | 10 – 2021 Annual Report
1. Directors and the Company Secretary
1.1 Directors
The directors in office at any time during or since the end of the financial year are:
Name and Qualifications
Position, Experience and special responsibilities
Mr Peter Hunt
Chairman
FCA
Appointed 15/12/20
Chairman since 30/06/21
Mr Hunt was appointed initially as a Non-Executive Director of the Company on 15
December 2020. He was a former consultant to BDO Australia, which acquired PKF
Adelaide of which Mr Hunt was senior partner in 2012. He is a member of the Chartered
Accountants Australia & New Zealand.
Mr Hunt is an experienced company director and has been a director and chairman over
several decades of a number of ASX listed mineral exploration and technology oriented
companies.
Mr Hunt is a member of the Company’s Remuneration and Nomination Committee and
Audit and Risk Committee.
In the three years immediately prior to 30 June 2021 Mr Hunt was a non-executive director
of Xped Ltd, resigning on the 5th February 2020.
Other than as disclosed above, in the three years prior to 30 June 2021, Mr Hunt held no
other positions with any other ASX listed companies.
Mr Robert Mencel
Managing Director
B Eng(Mining) MBA
Appointed CEO 24/05/21
Appointed MD 01/09/21
Mr Mencel is an engineering and mining executive with more than 25 years’ experience
developing and operating a wide range of mining, mineral processing and engineering
operations. Previously he held the position of CEO for RONPHOS Corp., the Republic of
Nauru’s Phosphate company, where he was responsible for production, marketing and
export of phosphate to customers throughout Asia and Indian Pacific region.
Mr Mencel brings significant senior managerial experience to the role at Centrex, having
held the position of Managing Director/CEO of various ASX listed companies in the energy
and resource sector.
In the three years before 30 June 2021, Mr Mencel held no director positions with any other
ASX listed companies.
Mr Graham Chrisp
Non-executive Director
B Tech (CE)
Appointed 21/1/10
Executive Chairman 2/12/19
– 30/06/21
Remains a non-executive
director
Mr Chrisp has a degree in Civil Engineering and has substantial experience in numerous
aspects of business operations, including design and construction of roads and other
earthworks, mineral exploration and property development. Having previously been an
owner and operator of earth moving equipment for mining and civil applications, Mr Chrisp
has practical experience with modest scale mining operations, including several of his own
developments. He was a founding director of Centrex Metals Limited (having previously
served as its Managing Director from 2003 to 2005) and has numerous private interests.
Mr Chrisp is a director of Dapop Pty Ltd, trustee of the Chrisp CXM Family Trust, which is
the largest shareholder in the Company. Accordingly, Mr Chrisp is not considered to be
“independent” for the purposes of the Company’s corporate governance policies.
Mr Chrisp is a member of the Company’s Remuneration and Nomination Committee and
Audit and Risk Committee.
In the three years before 30 June 2021, Mr Chrisp held no director positions with any other
ASX listed companies.
2021 Annual Report - Page | 11
DDr A John Parker
Independent Non-Executive Director
Dr Parker is a geologist, geophysicist and manager with extensive local and international
experience and knowledge of the geology, mineral deposits and mineralizing systems in
the Precambrian. He was formerly Chief Geologist with the mapping branch of the South
Australian Geological Survey and responsible for the mapping and publication of
geological maps throughout South Australia. In the late 1980’s he initiated the first
geological mapping GIS in Australia, a system that has subsequently been developed to
become the global leading GIS, SARIG.
Mr Parker is a member of the Company’s Remuneration and Nomination Committee and
the Audit and Risk Management Committee.
In the three years before 30 June 2021, Mr Chrisp held no director positions with any other
ASX listed companies.
Independent Non-Executive Director
Mr Cox has previously been Director and Secretary of ASX-listed company Lincoln Minerals
Limited (2007- 2012), Chairman of Wireless Communications Pty Ltd (2004 – 2016) and
Chairman of ASX-listed MIKOH Corporation Limited (2003-2005). In addition he has
provided secretarial services to a number of ASX listed companies. He was a Fellow of the
Institute of Chartered Accountants in Australia until his retirement in 2014 and brings to the
Company extensive accounting and governance experience.
Other than as disclosed above, in the three years prior to 30 June 2021, Mr Cox held no
other positions with any other ASX listed companies.
Mr Cox resigned on the 11/12/20.
BSc (Hons).PhD, DipCompSc,
MAIG, MAICD
Appointed 17/12/19
Mr Peter Cox
FCA (retired)
Appointed 28/1/20
Resigned 11/12/20
1.2 Company Secretaries
Company Secretaries
Mr Jonathan Lindh was appointed on the 29 March 2021 and has over 15 years’ legal and corporate advisory experience
practising predominantly in the energy and resources sector. Mr Lindh holds a Bachelor of Laws, a Bachelor of
International Studies and post graduate qualifications in finance and corporate governance. Mr Lindh has extensive
experience in the areas of corporate governance, mergers and acquisitions, joint ventures, farming arrangements, equity
capital markets, foreign investment and native title /aboriginal heritage.
The outgoing Company Secretary, Dr John Santich, was appointed Company Secretary on 31 March 2020 and ceased his
engagement on 29 March 2021. Our thanks go to John for the great work that he did for the Company.
Page | 12 – 2021 Annual Report
22. Executives considered to be Key Management Personnel
The executives considered to be Key Management Personnel in office at any time during or since the end of the financial
year are:
Mr Alastair Watts, General Manager, Exploration
BSc(Geo), DipBs(Front Line Management), MAusIMM
Mr Alastair Watts, appointed 15th March 2007, is a geologist with over 29 years’ experience in exploration, mining and
project development. He has extensive gold, iron ore and phosphate mining experience as well as a successful history of
mineral discovery and development. The technical expertise gained at the Phosphate Hill mine provided significant
exposure to the fertiliser market to complement Centrex’s development of the Ardmore Phosphate Rock Project. A broad
technical knowledge of exploration has been gained from base metal and gold projects in the Lachlan Fold Belt of New
South Wales, the eastern goldfields of Western Australia, the Drummond Basin in north Queensland and nickel laterite
deposits in Indonesia. He has held previous positions in both major resources houses, and mid-tier and junior operators.
His roles have spanned mining, quality control and project management.
Mr Gérard Bosch, Manager Approvals & Stakeholder Relations
Mr Bosch was appointed on 27th February 2018 and ceased employment on 12th April 2021.
3. Directors’ Meetings
The number of directors’ meetings and number of meetings attended by each of the directors of the Group during the
year ended 30th June 2021 was:
Board Meetings
Audit and Risk Management
Committee Meetings
Remuneration and
Nomination Committee
Eligible to
Attend
Number
Attended
Eligible to
Attend
Number
Attended
Eligible to
Attend
Number
Attended
Mr P Hunt (Appointed 15/12/20)
Mr G Chrisp
Dr J Parker
Mr P Cox (Resigned 11/12/20)
7
12
12
6
7
12
11
6
1
2
2
1
1
2
2
1
1
-
-
1
1
-
-
1
4. Corporate Governance Statement
The Board is committed to the principles underpinning
best practice in corporate governance. The Company
must comply with the ASX Listing Rules which require it
to report annually on the extent to which it complied
with the Corporate Governance Principles and
Recommendations 4th Edition (“Principles”) as
published by the ASX Corporate Governance Council.
The Board believes that the Company has complied
with the Principles for the current reporting period
unless otherwise stated in the Appendix 4G and
Corporate Governance Statement which is lodged on
the Company announcements platform at the same
time as the annual report.
A description of the Company’s main corporate
governance practices are available on the Company’s
website located at:
http://centrexmetals.com.au/governance/
5. Remuneration Report - audited
5.1 Principles of compensation
The remuneration report provides details of the
remuneration of the Company’s directors and the
senior executives identified as those who had authority
for planning, directing and controlling the Company’s
activities during the reporting period (“Key Management
Personnel”).
Total remuneration packages for the executives of the
Group are competitively set to attract and retain
appropriately qualified and experienced people. The
2021 Annual Report - Page | 13
For the 2021 financial year there were no awards made
under the STI plan. Details of the awards of rights
issued under the LTI plan are listed at the conclusion of
this Remuneration Report.
Mr Robert Mencel, CEO
Mr Mencel was appointed CEO on 24th May 2021. His
total annual fixed remuneration is $390,000 plus
statuary superannuation and for the 2021 financial year
(pro-rata) it was $41,786 (2020: NIL).
Mr Mencel employment with the company may be
terminated on three months written notice.
Mr Mencel received 100,000 shares as a sign on bonus as
part of his remuneration with a fair value of $5,900.
Other executives considered to be Key Management
Personnel
In addition to the Non-Executive Directors and
executives listed above, the following persons are
considered to be Key Management Personnel of the
Group:
Mr Alastair Watts - General Manager Exploration
Mr Gérard Bosch ceased employment on 12th April 2021.
Service Agreements
The Company has service contracts with each executive
listed above. Each contract is for an unlimited term and
can be terminated by either party by giving up to three
months’ written notice (except for Mr Gérard Bosch,
whereby either party must give four weeks written
notice). The Company reserves the right to terminate
the contract without notice in the event of misconduct
or dishonesty.
Remuneration and Nomination Committee assists the
Board in setting remuneration strategy.
EExecutive and Non-Executive Directors
Total compensation for all Non-Executive Directors,
pursuant to the constitution must not exceed $500,000
per annum.
For the year ended 30th June 2021, the Non-Executive
Directors’ compensation comprised Directors’ base fees
of $35,000 per annum (2020: $81,000 per annum) for the
Chairman and $35,000 per annum (2020: $49,500 per
annum) for the other Non-Executive Directors.
From 17th December 2019, Directors’ compensation
was revised on the back of current of the company’s
activities at that point in time, and comprised $35,000
per annum for each Director, with no additional fees to
be paid for Board Committee or Chairman
responsibilities.
Superannuation is paid on behalf of the Non-Executive
Directors at the rate of 9.5% per annum as is legislated.
Where the Company engages a director as a consultant
the value of superannuation benefits that would
otherwise have been payable are paid as additional
fees.
CEO and Company executives
Remuneration packages for the CEO and other Key
Management previously included a mix of fixed and
variable compensation, the variable compensation
using short and long term incentives. The remuneration
packages currently takes into account market practice
of comparable organisations within the industry and
reflect capability, role and experience of each executive.
The fixed remuneration component (cash,
superannuation and fringe benefits) is currently set by
utilising industry surveys with particular reference to the
practices of companies in the lowest quartile of the
survey (i.e. those with a similar market capitalisation
and with a similar sized workforce). Total remuneration
(base salary packages and variable remuneration)
provides the opportunity for executives to reach
compensation levels in the next quartile as outlined
within the industry surveys through the following
variable awards:
(cid:120)
(cid:120)
the Short Term Incentive (“STI”) Plan, which
awards a cash bonus of between 0% and 20% of
fixed remuneration subject to individual and
Company targets being met; and
the Long Term Incentive (“LTI”) Plan, under which
the executive may be granted incentive rights,
some of which vest after an extended period of
continuous employment (Retention Rights), the
others vesting after an assessment of performance
(Performance Rights).
Page | 14 – 2021 Annual Report
RRemuneration of Key Management Personnel (KMP) (Consolidated)
Details of the nature and amount of each major element of remuneration of each of the KMP are:
Salary & fees
Non--
monetary
benefits
Super--
annuation
benefits
Share--
based
payments
(1)
Termination
Total
Options /
Rights
related
$
$
$
%
$
$
Directors
Mr P Hunt CChairman
2021
20,759
2020
-
Mr G Chrisp. NNon-eexec
2021
166,513
2020
45,305
Mr A J Parker (2) NNon-eexec
2021
35,000
Mr P Cox (3) Non--exec
2021
16,042
2020
18,911
Mr R Mencel MManaging Director
2021
41,786
2020
14,866
Mr D Klingberg (4) NNon-eexec
2020
2021
-
-
2020
43,990
Mr J Hazel (5) NNon-eexec
2021
-
2020
15,188
Mr K Poh (6) NNon-eexec
2021
-
Mr C Indermaur (7) NNon-eexec
2021
-
2020
25,979
Total compensation: Directors
2021
280,,100
2020
32,715
2020
196,,954
Executives
Mr A Watts GGM Exploration
2021
239,419
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
-
3,325
4,304
3,325
1,797
1,524
1,412
2,679
-
-
-
-
1,443
-
-
-
-
-
-
-
-
-
-
-
-
5,900
-
-
-
-
-
-
-
-
-
10,853
5,900
8,956
-
22,745
11,800
2020
172,509
5,068
20,623
11,584
Mr Gerard Bosch MMgr. Approvals
2021
134,494
-
12,058
-
2020
159,088
4,880
15,113
11,584
Mr S Slesarewich (8) CCEO
2021
-
2020
216,980
Mr M Terry (9). CFO
2021
-
Mr S Klose (10). GM Projects
2021
-
2020
110,008
-
-
-
-
-
-
-
20,875
47,604
-
-
-
-
2020
135,629
2,836
15,060
7,276
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20,759
-
169,838
49,609
38,325
20,708
17,566
16,278
50,365
-
-
43,990
-
16,631
-
25,979
-
32,715
2996,8853
205,910
273,964
209,782
146,552
198,613
-
285,459
-
-
-
-
-
160,801
420,516
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
11.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
4.3
5.5
0.0
5.8
0.0
16.7
0.0
14.9
0.0
4.5
11,545
29,584
57,692
198,829
Total compensation: executives
2021
2020
373,913
794,214
-
12,784
34,803
83,216
11,800
107,632
57,692
1,053,484
Total compensation: KMP
2021
654,013
-
45,656
17,700
-
717,369
(1) In accordance with the requirements of the Accounting Standards, remuneration includes a proportion of the value of the equit y linked
compensation determined as at the grant date and progressively expensed over the vesting period. The amount allocated as remuneration is
not relative to or indicative of the actual benefit (if any) that the senior executives may ultimately realise should the equity instruments vest.
2020
991,,168
12,784
92,172
107,632
57,692
1,259,394
2021 Annual Report - Page | 15
(2) Mr A John Parker was appointed as a director on 17th December 2019.
(3) Mr Peter Cox was appointed as a director on 28th January 2020.
(4) Mr David Klingberg resigned as Chairman on 2nd December 2019 and retired as a director on 17th December 2019.
(5) Mr Jim Hazel retired as a director on 20th September 2019.
(6) Mr Kiat Poh resigned as a director on 7th November 2019.
(7) Mr Chris Inermmaur resigned as a director on 28th January 2020.
(8) Mr Simon Slesarewich’s employment with the Company ceased on 26th February 2020.
(9) Mr Mark Terry’s employment with the Company ceased on 10th December 2019.
(10) Mr Steve Klose’s employment with the Company ceased on 17th January 2020.
KKey Management Personnel Holding of Shares:
The movement during the reporting period in the number of ordinary shares in Centrex Metals Limited held, directly,
indirectly or beneficially, by each key management person, including their related parties, is as follows:
Opening
Balance
Number
Purchased/
Issued on
Vesting
Ceased as
KMP
Number
Sold
Closing
Balance
Graham Chrisp
(i)
Mr Robert Mencel
Dr A J Parker
Mr Peter Cox
David Klingberg
(ii)
Mr Alastair Watts
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
Issued
-
-
100,000
-
-
-
-
-
-
-
110,905,672
110,905,672
-
-
-
-
-
-
-
2,042,810
-
200,000
487,711
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,042,810)
-
-
-
-
-
-
-
-
-
-
-
-
-
(487,711)
110,905,672
110,905,672
100,000
-
-
-
-
-
-
-
200,000
-
(i)
(ii)
Shares are held by Dapop Pty Ltd is an entity associated with Mr Graham Chrisp, Mr Jason Chrisp and Mr Ben
Chrisp.
Shares are held by Patna Properties Pty Ltd is a company associated with Mr David Klingberg AO who retired effective 17 Decem ber 2019.
Key Management Personnel Holding of Options & Rights:
The number of rights issued during the current and prior years which has been recognised as Director and Key
Management Personnel remuneration is shown below:
30th JJune 2021
Holding at 30tth
Jun 20
Issued
Exercised (E) or
Lapsed (L)
Holding at 30tth
Jun 21
2019 Performance Rights
Expiring: 26/09/20; Share hurdle: $0.17
Mr Mark Terry *
Mr Alastair Watts
Mr Gerard Bosch
Total
*
750,000
280,000
280,000
1,310,000
-
-
-
-
(750,000)L
(280,000)L
(280,000)L
(1,310,000)
-
-
-
-
Mr Terry was made redundant during the period and under the terms upon which the 2019 performance rights were issued, the rights did
not lapse upon termination of employment.
The remaining rights at 1 July 2020 were granted on 27 August 2018 and valued using an appropriate valuation
methodology at grant date with fair value of 6.81 cents per performance right. The remaining rights expired unvested on
26 September 2020.
In accordance with AASB 2 Share-Based Payments, the fair value of the Rights were recognised through profit or loss. An
expense of $108,000 was recognised through profit or loss in the year ended 30 June 2020 with respect to these rights
which is included in the directors remuneration.
Page | 16 – 2021 Annual Report
The Company has not grant any options or rights over shares since 30 June 2020 and no options or rights are
outstanding at the date of this report.
During the year ended 30 June 2021, the company granted shares to two key management personnel, in total 300,000
shares were issued for $17,700. The fair value of the share based payments were determined based on the market price
for the shares as at the grant date.
KKey management personnel holding of convertible notes
Name
Mr Peter Hunt
Mt Robert Mencel
Dapop Pty Ltd (a company associated with
Mr Graham Chrisp, Mr Benjamin
Chrisp and Mr Jason Chrisp)
Dr A J Parker
Mr Alastair Watts
Mr Peter Cox
Convertible Note
Number
Price/Exp.
-
-
1
-
-
-
-
-
$0.022
-
-
-
Other than transactions as detailed in Note 12 to the financial statements, no director has received or become entitled
to receive, during or since the end of the reporting year, a benefit because of a contract made by the Group or a related
body corporate with a director, a firm of which a director is a member or a Company in which a director has a substantial
financial interest.
Other related party transactions:
During the year, Centrex Metals entered into a convertible securities agreement with Australia New Zealand Resources
Corporation Pty Ltd (a director related entity of Graham Chrisp) on 23 March 2021. However the effective date of the
note is 2 June 2021, this is the date the convertible note was issued and $1,000,000 funds received. The interest rate is at
12% per annum which accrue and compound on first day of each calendar month. As at 30 June 2021, $10,000 interest
has been paid in relation to the convertible notes. The convertible notes will convert to shares at $0.022 and options at
$0.05.
Consequences of performance on shareholder wealth
Any variable components of the Company’s executives’ remuneration (the short and long term incentives) seek to
encourage alignment of management performance and shareholders’ interests by linking remuneration to performance
of the Company as a whole.
Any award of any short term or long term incentive is always at the discretion of the Board which will also take into
account the following indices when assessing performance, although the Board acknowledges that as an exploration
company the use of such indices does not fully reflect Company performance.
Profit / (loss) attributable to
owners of the company
Dividends paid (per share)
Share price at 30 June
2021
2020
2019
2018
2017
(2,626,637)
(19,820,532)
(1,384,316)
(1,139,938)
488,828
-
$0.05
-
$0.03
-
-
$0.11
$0.10
-
$0.06
End of audited remuneration report.
2021 Annual Report - Page | 17
66. Principal Activity
The principal activity of the Group during the reporting year was exploration on the following areas:
(cid:120) Phosphate project development in Queensland;
(cid:120) Potash exploration in Western Australia; and
(cid:120) Base metals exploration in New South Wales.
7. Operating and Financial Review
A review of the operations of the Group during the year and the results of those operations are as follows:
The net profit / (loss) for the reporting year, after providing for income tax was:
20211
$
2020
$
Net profit / (loss) after income tax
(2,626,637)
(19,820,532)
The Group incurred expenditure of $919,766 (2020: $1,352,302) on mineral tenements during the year. Further details
can be found in Note 6 to the financial statements.
Further information on the Group’s operating activities can be found in the CEO’s Report.
8. Dividends
No dividends were declared during the year.
9. Events subsequent to year end
On the 1st September 2021 the Company took pleasure in announcing that current Centrex CEO Mr Robert Mencel had
been appointed by the Board as it’s Managing Director.
On the 17th September 2021 the Company went into trading halt after the Company received an invoice from Southern
Cross Fertilisers Pty Ltd (“SCF”), a wholly owned subsidiary of Incitec Pivot Limited (the Royalty Holder) requesting
payment of the Extension Fee.
The Board has subsequently sought and obtained legal advice regarding the validity of the invoice.
The Company believes that the mining of more than 27,000 tonnes of ore during February 2021 and the commercial sale
of phosphate rock has met the Royalty Deed’s definition of the commencement of Mining and can see no other possible
interpretation. The board has therefore determined to emphatically reject the request for payment of the Extension Fee.
The Company looks forward to the matter being resolved in good faith and will keep the market informed on any
developments.
10. Likely Developments
The Directors have assessed the status of all of the Group’s tenements and believe all tenements have sufficient mineral
potential to warrant continued exploration. It is noted however, that substantial advancement of the projects is subject
to sufficient finance being raised and sufficient funding has not yet been arranged.
13. Indemnification and insurance of Directors and Officers
Directors’ and Officers’ Liability Insurance has been secured to insure the Directors, officers and senior executives of the
Group to the extent permitted by the Corporations Act 2001. The officers of the Company and the Group covered by the
insurance policy include any person acting in the course of duties for the Company or the Group who is or was a
Director, secretary or senior executive. The contract of insurance prohibits the disclosure of the nature of the insurance
covered and the amount of the premium.
The Company’s constitution provides that the Company indemnifies every person who is or has been an officer of the
Company for any liability (other than for legal costs) incurred by that person as an officer of the Company and any
Page | 18 – 2021 Annual Report
subsidiary of the Company. The Company has entered into deeds of access, insurance and indemnity with the current
Directors of the Company. The agreements indemnify the Directors to the extent permitted by law against certain
liabilities and legal costs incurred by the Directors; require the Company to maintain and pay Directors’ and Officers’
Liability Insurance in respect of the Director; and provide the Director with access to board papers and other
documents.
114. Environmental Regulation and Performance
The Group is aware of its responsibility to impact as little as possible on the environment, and where there is any
disturbance, to rehabilitate sites. During the period under review the majority of work carried out was on Ardmore
Phosphate Rock Project in NW Queensland and the Group followed procedures and pursued objectives in line with
requirements published by the relevant regulators including the Department of Environment and Science, the
Department of Natural Resources, Mines and Energy and the Department of Aboriginal and Torres Strait Islander
Partnerships.
The requirements from the relevant government departments are quite detailed and encompass the impact on owners
and land users, heritage, health and safety and proper restoration practices. The Group supports this approach and is
confident that it properly monitors and adheres to these objectives, and any local conditions applicable. The Group
and its partner companies have individuals with detailed job responsibilities in this area.
The Board is not aware of any significant environmental breaches during the period covered by this report.
15. Non-audit services
During the year Grant Thornton, the Company’s auditor, has performed certain other services in addition to their
statutory duties.
The Board has considered the non-audit services provided during the year by the auditor and in accordance with
written advice provided by resolution of the Audit and Risk Management Committee is satisfied that the provision of
those non-audit services during the year by the auditor is compatible with, and did not compromise, the auditor
independence requirements of the Corporations Act 2001 for the following reasons:
(cid:120)
(cid:120)
all non-audit services were subject to the corporate governance procedures adopted by the Company and
have been reviewed by the Audit and Risk Management Committee to ensure they do not impact the integrity
and objectivity of the auditor; and
the non-audit services provided do not undermine the general principles relating to auditor independence as
set out in APES 110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing
the auditor’s own work, acting in a management or decision making capacity for the Company, acting as an
advocate for the Company or jointly sharing risks and rewards.
Details of the amounts paid or accrued to the auditor of the Company, Grant Thornton, and its related practices for
audit and non-audit services provided during the year are set out below. The amounts paid in 2020 relate to the
Company previous auditor KPMG.
Audit Services
Other services
Auditors of the company
20211
$
38,000
4,400
442,400
20220
$
46,575
11,321
57,896
2021 Annual Report - Page | 19
16. Lead Auditor’s Independence Declaration
The Lead auditor’s independence declaration is set out on page 21 and forms part of the Directors’ Report for the
financial year ended 30th June 2021.
Signed in accordance with a Resolution of the Board of Directors:
Mr Robert Mencel
Managing Director
Dated at Adelaide this 29th day of September 2021.
Page | 20 – 2021 Annual Report
Level 3, 170 Frome Street
Adelaide SA 5000
Correspondence to:
GPO Box 1270
Adelaide SA 5001
T +61 8 8372 6666
Auditor’s Independence Declaration
To the Directors of Centrex Metals Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Centrex
Metals Limited for the year ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been:
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
J L Humphrey
Partner – Audit & Assurance
Adelaide, 29 September 2021
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
CConsolidated Statement of Profit or Loss
and Other Comprehensive Income
For the Year ended 30th June 2021
Note
2021
$’’000
2020
$’’000
Other income
Office and administration expenses
Consultants and management expenses
Directors' fees
Employee benefit expenses
Exploration expenditure written off
Depreciation expense
Change in fair value of convertible note
Other expenses
Results from operating activities
Finance income
Finance costs
Net finance income
LLoss before income tax
Income tax benefit
LLoss for the period
Other comprehensive income
Total comprehensive lloss ffor the period
LLoss attributable to:
Owners of the Company
LLoss for the period
Earnings per share for lloss aattributable to the
ordinary equity holders of the company:
Basic earnings / (loss) per share
Diluted earnings / (loss) per share
2
2
6
19
2
2
4
5
5
55
(261)
(195)
(238)
(122)
(45)
(12)
(1,794)
-
((2,612))
8
(23)
(15)
59
(388)
(260)
(197)
(550)
(18,466)
(14)
-
(53)
((19,,869))
50
(2)
48
((2,,627))
((19,,821))
-
((2,627))
-
((2,627))
(2,627)
(2,6627)
-
((19,,821))
-
((19,,821))
(19,821)
((19,,821))
Cents per share
Cents per share
(0.76)
(0.76)
(6.28)
(6.28)
The Consolidated Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with the
notes to the consolidated financial report.
Page | 22 – 2021 Annual Report
CConsolidated Statement of
Financial Position
As at 30th June 2021
Note
As at
30tth JJune 2021
$’’000
30tth JJune 2020
$’’000
Assets
Cash and cash equivalents
Term deposits
Receivables and other assets
Total Current Assets
Deposits held as security
Exploration and evaluation expenditure
Plant and equipment
Total Non--Current Assets
Total assets
Liabilities
Trade and other payables
Employee benefits
Total Current Liabilities
Employee benefits
Provision for rehabilitation
Derivative financial instruments
Total Non--Current Liabilities
Total LLiabilities
Net assets
Equity
Contributed equity
Share option reserve
Profit reserve
Accumulated losses
Total equity
7
6
19
1,331
860
80
2,,271
510
11,910
-
112,4420
114,6691
92
10
102
-
510
2,794
3,304
3,406
11,,285
42,564
-
1,005
(32,284)
111,2285
437
1,377
187
2,,001
323
10,674
12
111,0009
113,0010
72
78
150
11
151
-
1622
3122
12,,699
41,351
2,648
1,005
(32,305)
112,6699
The Consolidated Statement of Financial and Other Comprehensive Income is to be read in conjunction with the notes
to the consolidated financial report.
2021 Annual Report - Page | 23
CConsolidated Statement of Changes
in Equity
For the Year ended 30th June 2021
Contributed
equity
Share Option
reserve
Profit reserve
Accumulated
Losses
Total
$’’000
$’’000
$’’000
$’’000
$’’000
Current Period
Balance at 30th June 2020
Loss for the period
Total Comprehensive Income
for the Period
Contributions from/to equity
owners
Contributions from equity
holders
Share issue costs
Share-based payment
transactions
Balance at 30th JJune 2021
Prior Period
Balance at 30th June 2019
Loss for the period
Total CComprehensive Income
for the Period
Contributions from/to equity
owners
Share-based payment
transactions
Balance at 30th JJune 2020
41,351
2,648
1,005
-
-
1,209
(14)
-
-
-
-
18
(2,648)
-
-
-
-
-
(32,305)
(2,627)
12,699
(2,627)
((2,627))
(2,6627)
-
-
2,648
1,209
(14)
18
11,285
442,564
-
1,005
((32,284)
41,351
2,540
1,005
-
-
-
-
-
108
-
-
-
(12,484)
(19,821)
32,412
(19,821)
(19,821)
(19,821)
-
108
41,351
2,648
1,005
(32,305)
12,699
The Consolidated Statement of Changes in Equity is to be read in conjunction with the notes to the consolidated
financial report.
Page | 24 – 2021 Annual Report
CConsolidated Statement of
Cash Flows
For the Year ended 30th June 2021
Cash flows from ooperating activities
Other income received
Payments to suppliers and employees
Net cash uused in operating activities
Cash flows from investing activities
Expenditure on mining tenements
Interest received
Acquisition of property plant and equipment
Proceeds on disposal of assets
Cash transferred (to) / from term deposits
Net cash uused in / (from) iinvesting activities
Cash flows from financing activities
Proceeds from issue of equity securities
Proceeds from issue of convertible note
Proceeds from exercise of options
Transaction costs relating to issues of equity
securities
Net ccash from financing activities
Net increase / (decrease) in cash
Cash at the beginning of the year
Cash at the end of the year
Note
15(b)
2021
$’’000
2020
$’’000
55
(979)
(9924)
50
(2,313)
(2,263)
(717)
(1,302)
9
-
-
332
((376)
1,199
1,000
10
(15)
2,194
894
437
1,331
63
(3)
9
2,665
11,432
-
-
-
-
-
(831)
1,268
437
The Consolidated Statement of Cash Flows is to be read in conjunction with the notes to the consolidated financial
report.
2021 Annual Report - Page | 25
NNotes to the Consolidated Financial
Statements
For the Year ended 30th June 2021
1. STATEMENT OF SIGNIFICANT ACCOUNTING
POLICIES
The Company’s registered office is located at Level 6, 44
Waymouth Street Adelaide, SA 5000. The consolidated
financial report of the Company for the financial year
ended 30th June 2020 comprises the Company and its
subsidiaries (together referred to as the ‘Group’). The
Group is a for profit entity and is primarily involved in
minerals exploration and development in Australia.
The financial report was authorised for issue by the
directors on 29th September 2021.
a) Statement of Compliance
The financial report is a general purpose financial report,
which has been prepared in accordance with Australian
Accounting Standards (‘AASBs’) adopted by the Australian
the
Accounting Standards Board
Corporations Act 2001.
The consolidated financial
statements of the Group complies with International
Financial
and
interpretations adopted by the International Accounting
Standards Board (‘IASB’).
Standards
Reporting
(‘IFRSs’)
(‘AASB’)
and
b) Going Concern
The Group’s financial statements are prepared on the
going concern basis which assumes continuity of normal
business activities and the realisation of assets and
settlement of liabilities and commitments in the normal
course of business.
During the year ended 30 June 2021 the group recognised
a loss of $2.627m (2020: $19.821m), had net cash outflows
from operating and investing activities of $1.30m (2020:
$0.831m), and had accumulated losses of $ 32.284m(2020:
$32.305m) as at 30 June 2021. The continuation of the
group as a going concern is dependent upon its ability to
generate sufficient net cash inflows from operating and
financing activities and manage the level of exploration
and other expenditure within available cash resources.
This financial report does not include any adjustments
relating to the recoverability and classification of
recorded asset amounts or to the amounts and
classification of liabilities that might be necessary should
the Company not continue as a going concern.
c) Basis of Measurement and Presentation
The financial report is presented in Australian dollars,
which is the Group’s functional currency.
Page | 26 – 2021 Annual Report
It has been prepared on the basis of historical cost and,
except where stated, does not take into account changing
money values or current valuations of non-current assets.
d) Accounting estimates and judgements
The Group’s estimates and judgements that have a
significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next
financial year are discussed below.
Estimates and assumptions
Income Tax – Note 1(j)
Determination of future taxable profits requires estimates
and assumptions as to future events and circumstances, in
particular, whether
successful development and
commercial exploitation, or alternatively sale, of the
respective area of interest will be achieved. At this point in
insufficient
time the Group has assumed there
probability of generating income and as such has not
recognised a deferred tax asset in relation to the Group’s
carried forward tax losses in excess of the value to offset its
deferred tax liabilities.
is
Exploration, evaluation and development expenditure –
Note 1(k)
commercial
exploitation,
Determining the recoverability of exploration, evaluation
and development expenditure capitalised in accordance
with the Group’s accounting policy (refer Note 1(k)),
requires estimates and assumptions as to future events
in particular, whether successful
and circumstances
development
or
and
alternatively sale, of the respective areas of interest will be
achieved. Important to this assessment are estimates and
assumptions as to ore resources and reserves, the timing
of expected cash flows, exchange rates, commodity prices
and future capital requirements.
Changes in these
estimates and assumptions as new information about the
presence or recoverability of an ore resource or reserve
become available, may impact the assessment of the
recoverable amount of exploration, evaluation and
development expenditure. If, after having capitalised the
expenditure under policy 1(k), a judgement is made that
recovery of the expenditure is currently not able to be
determined, an impairment loss is recorded in accordance
with accounting policy 1(p).
NNotes to the Consolidated Financial Statements (continued)
e) Principles of Consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. The
consolidated financial statements of the Group include
the financial statements of the Company, being the parent
entity, and its wholly owned subsidiaries, from the date
that control commences until the date control ceases:
• DSO Development Pty Ltd
• Flinders Pastoral Pty Ltd
• Lachlan Metals Pty Ltd
• Kimba Gap Iron Project Pty Ltd
• Centrex QLD Exploration Pty Ltd (previously named
Port Spencer Holdings Pty Ltd)
• South Australia Iron Ore Group Pty Ltd
• Centrex Phosphate Pty Ltd (previously named Sturt
Pastoral Pty Ltd)
• Centrex Potash Pty Ltd
• Centrex Zinc Pty Ltd
f)
Joint Arrangements
Joint arrangements are those entities over whose activities
the consolidated entity has joint control, established by
contractual agreement.
Jointly controlled operations and assets
The interest of the consolidated entity in jointly controlled
operations and jointly controlled assets are brought to
account by recognising in its financial statements the
assets it controls and the liabilities that it incurs, and the
expenses it incurs and its share of income that it earns from
the sale of goods or services produced by the joint
arrangement. To the extent that the Company is being
“free-carried” in the jointly controlled assets it will not
reflect a share of such expenditure.
g) Revenue Recognition
Revenue and expenses are brought to account on an
accrual basis.
Interest income - Interest income is recognised as it accrues
and is included in finance income.
Gain or loss on disposal of interest in mineral tenements
The Group recognises a gain or loss on disposal of interest
in mineral tenements as the difference between the
carrying amount of the asset at the time of the disposal
and the proceeds of disposal, less any direct costs. This
income is recognised when the risks and rewards of
ownership have passed to the buyer.
h) Government Grants
Grants that compensate the Group for exploration and
evaluation expenditure incurred are offset against the
exploration and evaluation capitalised asset in the same
period in which the capitalised expenditure is recognised.
i)
(i)
Cash and Cash Equivalents and term deposits
Cash and cash equivalents comprise cash balances
and call deposits which can be readily accessed and
have maturities of 90 days or less.
(ii) Term deposits comprise cash deposits with
maturities of more than 90 days.
j)
Income Tax
Income tax expense comprises current and deferred tax.
Income tax is recognised in profit or loss except to the
extent that it relates to items recognised directly in equity,
in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable
income
for the year, using tax rates enacted or
substantively enacted at the balance sheet date, and any
adjustment to tax payable in respect of previous years.
Deferred tax is recognised using the balance sheet liability
method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation
purposes. The following temporary differences are not
provided for: recognition of assets or liabilities that affect
neither accounting nor taxable profit, and differences
relating to investments in subsidiaries to the extent that
they will probably not reverse in the foreseeable future.
The amount of deferred tax provided is based on the
expected manner of realisation or settlement of the
carrying amount of assets and liabilities, using tax rates
enacted or substantively enacted at the balance sheet
date.
Deferred tax assets and liabilities are offset if there is a
legally enforceable right to offset current tax liabilities and
assets, and they relate to taxes levied by the same tax
authority on the same taxable entity, or on different tax
entities, but they intend to settle current tax liabilities and
assets on a net basis or their tax assets and liabilities will
be realised simultaneously.
A deferred tax asset is recognised only to the extent that it
is probable that future taxable profits will be available
against which the asset can be utilised. Deferred tax assets
are reduced to the extent that it is no longer probable that
the related tax benefit will be realised. Determination of
future taxable profits requires estimates and assumptions
as to future events and circumstances, in particular,
whether successful development and commercial
exploitation, or alternatively sale, of the respective area of
interest will be achieved. This includes estimates and
judgements about commodity prices, ore reserves,
exchange rates,
future
operational performance and the timing of estimated cash
future capital requirements,
2021 Annual Report - Page | 27
NNotes to the Consolidated Financial Statements (continued)
flows. Changes in these estimates and assumptions could
impact on the amount and probability of estimated
taxable profits and accordingly the recoverability of
deferred tax assets.
The company and its wholly owned Australian resident
subsidiaries commenced being a tax consolidation group
on 27th January 2005 and are therefore taxed as a single
entity. The head entity within the tax consolidation group
is Centrex Metals Limited.
k) Exploration, Evaluation and Development
Expenditure
Exploration for and evaluation of mineral resources is the
search for mineral resources after the entity has obtained
legal rights to explore in a specific area, as well as the
determination of the technical feasibility and commercial
viability of extracting the mineral resource. Accordingly,
exploration and evaluation expenditures are those
expenditures incurred by the Group in connection with the
exploration for and evaluation of mineral resources before
the technical feasibility and commercial viability of
extracting mineral resources are demonstrable.
Costs associated with exploration, evaluation and
development expenditure will be accumulated in respect
of each separate ‘area of interest’. An ‘area of interest’ is
an individual geological area which is considered to
constitute a favourable environment for the presence of a
mineral deposit or has been proved to contain such a
deposit.
incurred on activities
Expenditure
that precede
exploration and evaluation of mineral resources, including
all expenditure incurred prior to securing legal rights to
explore an area, is expensed as incurred. For each area of
interest the expenditure is recognised as an exploration
and evaluation asset where the following conditions are
satisfied:
(a) The rights to tenure of the area are current; and
(b) At least one of the following conditions is also met:
(i) The expenditure is expected to be recouped through
successful development and commercial exploitation of
an area of interest, or alternatively by its sale; or
(ii) Exploration and evaluation activities in the area of
interest have not, at reporting date, reached a stage
which permits a reasonable assessment of the existence
or otherwise of ‘economically recoverable reserves’ and
active and significant operations in, or in relation to, the
area of
Economically
recoverable reserves are the estimated quantity of
product in an area of interest that can be expected to be
profitably extracted, processed and sold under current
and foreseeable conditions.
interest are continuing.
Exploration and evaluation assets include:
Page | 28 – 2021 Annual Report
(cid:120) Acquisition of rights to explore;
(cid:120) Topographical,
geological,
geophysical studies;
geochemical
and
(cid:120) Exploratory drilling, trenching, and sampling; and
(cid:120) Activities in relation to evaluating the technical
feasibility and commercial viability of extracting the
mineral resource.
General and administrative costs are allocated to, and
included in, the cost of exploration and evaluation assets
only to the extent that those costs can be related directly
to the operational activities in the area of interest to which
the exploration and evaluation assets relate. In all other
instances, these costs are expensed as incurred.
During the time in which an area of interest qualifies for
classification as an exploration and evaluation asset; any
proceeds from the sale of material (derived for the purpose
of evaluating its saleability) from that area of interest are
offset against the expenditure incurred for that area of
interest.
Exploration and evaluation assets are classified as tangible
or intangible according to the nature of the assets. Assets
that are classified as tangible include: piping and pumps;
and, vehicles and drilling equipment. Assets that are
include: acquired rights to explore and
intangible
exploratory drilling costs.
Exploration and evaluation assets are transferred to
feasibility and
Development Assets once
commercial viability of an area of interest is demonstrable.
Exploration and evaluation assets are assessed for
impairment, and any impairment loss is recognised, prior
to being reclassified.
technical
Exploration and evaluation assets are assessed for
impairment annually
if (i) sufficient data exists to
determine technical feasibility and commercial viability,
and (ii) facts and circumstances suggest that the carrying
amount exceeds the recoverable amount (see impairment
accounting policy). For the purposes of impairment
testing, exploration and evaluation assets are allocated to
cash-generating units to which the exploration activity
relates. The cash generating unit shall not be larger than
the area of interest.
l)
Provisions
A provision is recognised in the consolidated statement of
financial position when the Group has a present legal or
constructive obligation that can be measured reliably as a
result of a past event, and it is probable that an outflow of
economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and,
where appropriate, the risks specific to the liability.
NNotes to the Consolidated Financial Statements (continued)
m)
Provisions for Restoration and Rehabilitation
A provision is recognised for the estimated cost of
rehabilitation, decommissioning and restoration relating
to areas disturbed during the construction of the Ardmore
Trial Mine up to reporting date but not yet rehabilitated.
The provision is based on current cost estimates and has
been determined on a discounted basis. As the provision
represents the discounted value of the present obligation,
using a pre-tax rate that reflects current market
assessments and the risks specific to the liability, the
increase in value of the provision due to the passage of
time will be recognised as a borrowing cost in the profit
and loss statement in future periods. The provision is
recognised as a non-current liability (in line with the
expected timescales for the work to be performed) with a
corresponding asset taken to account and amortised over
the life of the trial mine. At each reporting date the
rehabilitation liability is reviewed and re-measured in line
with changes in discount rates and timing and the
amounts of the costs to be incurred based on the area of
disturbance at reporting date. Changes in the liability
relating to the re-assessment of rehabilitation estimates
are added to or deducted from the related asset.
n) Property, Plant and Equipment
Property, plant and equipment is brought to account at
cost, less where applicable any accumulated depreciation
and impairment losses. The carrying amount of property,
plant and equipment is reviewed annually by the Directors
to ensure it is not in excess of the recoverable amount of
those assets (refer Note 1(p)).
The gain or loss on disposal of fixed assets is determined
as the difference between the carrying amount of the asset
at the time of disposal and the proceeds of disposal, and is
included in operating profit before income tax in the year
of disposal.
The depreciable amount of all fixed assets is depreciated
over their useful lives commencing from the date the
assets are held ready for use.
o) Depreciation
With the exception of exploration, evaluation and
development expenditure, depreciation is charged to
profit or loss on a straight-line basis over the estimated
useful lives of each part of an item of plant and equipment.
re-classification of Exploration and
Following
evaluation assets as development assets, they are
depreciated on a unit of production basis over the life of
the economically recoverable reserves, once production
commences.
the
Land is not depreciated.
The estimated useful lives of plant and equipment in the
current and comparative periods are as follows:
Motor vehicles
Fixtures and fittings
Other plant and equipment
Buildings
p)
Impairment
3-5 years
3-5 years
3-5 years
50 years
The carrying amounts of the Group’s non-financial assets
are reviewed at each balance sheet date to determine
whether there is any indication of impairment. If any such
indication exists, the asset’s recoverable amount
is
estimated.
An impairment loss is recognised whenever the carrying
amount of an asset or its cash-generating unit exceeds its
recoverable amount. Impairment losses are charged to
profit or loss, unless an asset has previously been revalued,
in which case the impairment loss is recognised as a
reversal to the extent of that previous revaluation with any
excess recognised through profit or loss.
losses recognised
in respect of cash-
Impairment
generating units are allocated first to reduce the carrying
amount of any goodwill allocated to cash-generating units
(group of units) and then, to reduce the carrying amount of
the other assets in the unit (group of units) on a pro rata
basis.
The recoverable amount of other assets is the greater of
their fair value less costs to sell and value in use. In
assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time
value of money and the risks specific to the asset. For an
asset that does not generate largely independent cash
inflows, the recoverable amount is determined for the
cash-generating unit to which the asset belongs.
Impairment losses are reversed when there is an indication
that the impairment loss may no longer exist and there has
been a change in the estimate used to determine the
recoverable amount. An impairment loss is reversed only
to the extent that the asset’s carrying amount does not
exceed the carrying amount that would have been
determined, net of depreciation or amortisation, if no
impairment loss had been recognised.
q) Goods and Services Tax
Revenues, expenses and assets are recognised net of the
amount of goods and services tax (GST), except where the
amount of GST incurred is not recoverable from the
taxation authority. In these circumstances, the GST is
recognised as part of the cost of acquisition of the asset or
as part of the expense.
Receivables and payables are stated with the amount of
GST included. The net amount of GST recoverable from, or
payable to the Australian Taxation Office (ATO), is included
2021 Annual Report - Page | 29
NNotes to the Consolidated Financial Statements (continued)
as a current asset or liability in the consolidated statement
of financial position.
based on the net marginal cost to the Group as the benefits
are taken by the employees.
Cash flows are presented in the cash flow statement on a
gross basis. The GST component of cash flows arising from
investing and financing activities which are recoverable or
payable to the ATO, are disclosed as operating cash flows.
r)
Payables
Liabilities are recognised for amounts to be paid in the
future for goods or services received. Trade accounts
payable are normally settled within 60 days.
s)
Share capital
Transaction costs of an equity transaction are accounted
for as a deduction from equity, net of any related income
tax benefit.
t)
Employee benefits
Short-term employee benefits
Short-term employee benefits are expensed as the related
service is provided. A liability is recognised for the amount
expected to be paid if the Group has a present legal or
constructive obligation to pay this amount as a result of
past service provided by the employee and the obligation
can be estimated reliably.
Long-term service benefits
The Group’s net obligation in respect of long-term service
benefits, is the amount of future benefit that employees
have earned in return for their service in the current and
prior periods. The obligation is calculated using expected
future increases in wage and salary rates including related
on-costs and expected settlement dates, and
is
discounted using the rates attached to the corporate
bonds at the balance sheet date which have maturity
dates approximating to the terms of the Group’s
obligations. Remeasurements are recognised in profit or
loss in the period in which they arise.
Defined contribution superannuation funds
Obligations for contributions to defined contribution
superannuation funds are recognised as an expense in the
profit or loss as incurred.
Wages, salaries, annual leave and non-monetary benefits
the
Liabilities for employee benefits for wages, salaries, and
annual leave that are expected to be settled within 12
months of
represent present
reporting date
obligations resulting from employees’ services provided to
reporting date and are calculated at undiscounted
amounts based on remuneration wage and salary rates
that the Group expects to pay as at the reporting date
including related on-costs, such as workers compensation
insurance and payroll tax.
Non-accumulating non-
monetary benefits, such as housing and cars, are expensed
Page | 30 – 2021 Annual Report
Termination benefits
terminate employment before
Termination benefits are recognised as an expense when
the Group is demonstrably committed, without realistic
probability of withdrawal, to a formal detailed plan to
either
the normal
retirement date, or to provide termination benefits as a
to encourage voluntary
result of an offer made
redundancy.
for voluntary
Termination benefits
redundancies are recognised as an expense if the Group
has made an offer of voluntary redundancy, it is probable
that the offer will be accepted, and the number of
acceptances can be estimated reliably.
u) Share and option compensation
Where shares or share options are issued to employees or
directors as remuneration for past services, the fair value
of options granted is recognised as an employee expense
with a corresponding increase in equity. The fair value is
measured at grant date and recognised over the period
during which the employees become unconditionally
entitled to the options. Unless otherwise stated, the fair
value of the options granted is measured using an option-
pricing model, taking
into account the terms and
conditions upon which the options were granted. The
amount recognised as an expense is adjusted to reflect the
actual number of share options that vest except for those
that fail to vest due to market conditions or vesting
conditions not being met.
The fair value of the employee share options have been
measured using the Black-Scholes formula. Measurement
inputs include the share price on measurement date, the
exercise price of the instrument, expected volatility based
on the Company’s historic volatility, particularly over the
period commensurate with the expected term and the risk
free interest rate. Service and non-market performance
conditions attached to the transactions are not taken into
account in determining fair value.
v) Segmental reporting
The Group determines and presents operating segments
based on the information that internally is provided to the
Board, collectively the Group’s chief operating decision
makers.
The Board receives information internally based on the
geographical location of the Group’s assets. It has been
determined that as all of the assets are in one country
(Australia) and operations relate predominantly to mining
exploration, it is appropriate to have one operating
segment.
NNotes to the Consolidated Financial Statements (continued)
w) Earnings per share
The Group presents basic and diluted earnings per share
(EPS) data for its ordinary shares. Basic EPS is calculated
by dividing the profit or loss attributable to ordinary shares
of the Company by the weighted average number of
ordinary shares outstanding during the period. Diluted
EPS
loss
is determined by adjusting the profit or
attributable to ordinary shareholders and the weighted
average number of ordinary shares outstanding for the
effects of all dilutive potential ordinary shares, which
comprise any convertible notes, share options, and rights
granted to employees.
x) Convertible Note
Borrowings and other financial liabilities
Financial liabilities are recognised at the fair value of the
consideration received, when the group becomes a party
to the contractual provisions of the financial instrument. A
financial liability is recognised when it is extinguished,
discharge, cancelled or expires.
Classification and measurement of financial liabilities
The Group's financial liabilities include borrowings, trade
and other payables and derivative financial instruments.
Financial liabilities are initially measured at fair value, and,
where applicable, adjusted for transactional costs unless
the group designate a financial liability at fair value
through profit or loss.
financial
Subsequently,
liabilities are measured at
amortised cost using the effective interest method except
for derivatives and financial liabilities designated at FVPL,
which are carried subsequently at fair value with gains or
losses recognised in profit or loss.
The Group has recognised its convertible note liabilities at
FVPL in order to provide the most relevant information to
users, and furthermore to keep consistency with initial
recognition on inception of these instruments. Assessment
in regard to
were made at each reporting period
underlying valuation of its liability in regards to share price
upon conversion of convertible notes.
y) New standards and interpretations
At the date of authorisation of these financial
statements, several new, but not yet effective, standards
and amendments to existing standards, and
interpretations have been published by the IASB. None of
these standards or amendments to existing standards
have been adopted early by the Group. Management
anticipates that all relevant pronouncements will be
adopted for the first period beginning on or after the
effective date of the pronouncement. New standards,
amendments and interpretations not adopted in the
current year have not been disclosed as they are not
expected to have a material impact on the Group’s
financial statements.
The accounting policies applied by the Group in the
consolidated financial statements are consistent with
those applied in the prior year. The Group has not early
adopted any other standard, interpretation or
amendment that has been issued but is not yet effective.
Standards, interpretations and amendments that apply
for the first time in 2021 did not have any impact on the
amounts recognised in prior periods and are not
expected to significantly affect the current or future
periods
2021 Annual Report - Page | 31
NNotes to the Consolidated Financial Statements (continued)
2. PROFIT FROM CONTINUING OPERATIONS
Finance Income
Interest income on bank accounts including term deposits
Other income
Gain on asset disposals
Cash flow boost
Other
Employee Benefit Expenses
Wages and salaries
Contributions to defined contribution superannuation funds
Equity settled share-based payment transactions
Other employee costs
Finance costs
Accrued/Expensed Convertible note interest
Bank fees/interest
3. AUDITOR’S REMUNERATION
Audit Services
Other services – employment advice
Other services – tenement expenditure audit
Other services – taxation advice
Auditors of the company
2021
$’’000
2020
$’’000
8
8
-
50
5
55
60
46
18
(2)
122
10
13
23
2021**
$
2020
$
38
-
-
4
42
50
50
9
50
-
59
290
94
108
58
550
-
2
2
46
7
5
-
58
*The company changed auditors for the 2021 financial year. As a result:
- 2020 remuneration reflects amounts paid to KPMG in their capacity as auditors of the company
- 2021 remuneration reflects amounts paid to Grant Thornton Audit Pty Ltd and their related practices
Page | 32 – 2021 Annual Report
NNotes to the Consolidated Financial Statements (continued)
4.
TAXATION
The consolidated entity is not recognising a deferred tax asset to the extent that it exceeds the total of deferred tax
liabilities. Details of the current and deferred income tax expense is shown below:
2021
$’000
2020
$’000
Current iincome tax expense / (benefit)
Current period
Total income tax expense / (benefit)
Deferred Tax assets (DTA) and Deferred Tax liabilities (DTL)
Property, plant and equipment
Provisions and accrued expenses
Exploration and evaluation assets
Interest receivable
Deferred capital expenses
Net DTL
Tax losses recognised to the extent of the DTL
Reconciliation of effective tax rate
Loss for the year
Total income tax benefit
Loss excluding income tax
Prima facie income tax benefit calculated at 27.5% (2020: 27.5%)
Non-deductible expenses
Non-assessable government grants
Tax losses not recognised
Total income tax benefit
Unrecognised tax losses at 26% (2020: 27.5%)
-
-
16
145
(1,691)
-
7
(1,5523)
1,523
(2,627)
-
(22,627)
(683)
471
(13)
225
--
6,832
-
-
(30)
69
(1,237)
-
-
(1,198)
1,198
(19,821)
-
(19,821)
(5,451)
31
-
5,420
--
8,110
2021 Annual Report - Page | 33
NNotes to the Consolidated Financial Statements (continued)
5. EARNINGS PER SHARE
Basic earnings per share
Loss attributable to oordinary shareholders
Loss for the period
Looss attributable to ordinary shareholders
2021
$’’000
2020
$’’000
(2,627)
(19,821)
(22,6627)
Number of Shares
(19,821)
Number of Shares
Weighted average number of ordinary shares
Issued ordinary shares at beginning of year
Weighted average number of ordinary shares at year end
Earnings per share for continuing and discontinued operations
Basic earnings / (loss) – cents per share
Diluted earnings / (loss) – cents per share
315,685,357
3346,905,611
315,685,357
3315,685,357
(0.76)
(0.76)
(6.28)
(6.28)
Options or rights on issue are considered to be potential shares and are therefore excluded from the weighted
average number of ordinary shares used in the calculation of basic earnings per share. The dilutive earnings per
share at 30 June 2021 is the same as basic earnings per share. In accordance with AASB 133 Earnings per share, as
the potential ordinary shares would result in a decrease in the earnings per share, no dilutive effect has been taken
into account.
6. EXPLORATION AND EVALUATION EXPENDITURE
Tenements
The exploration and evaluation expenditure assets comprise of exploration expenditure incurred since acquiring the
exploration licenses. The expenditure is capitalised on a tenement by tenement (“area of interest”) basis.
Cumulative
Expendituree to
30th Jun 220
Expenditure
12 months to
30th Jun 221
Increase
Rehab
Provision tto
30th JJun 211
Tenements
Impaired to
30th Jun 221
Cumulative
Expenditure to
30th Jun 221
$’’000
$’’000
$’’000
$’’000
$’’000
Ardmore Phosphate
Northern Territory Phosphate
Goulburn Zinc
Oxley Potassium Nitrate
Total
10,660
14
-
-
10,,674
859
-
35
27
9211
7. FINANCIAL GUARANTEES
Deposits held as security
Deposits held as security
360
-
-
-
3660
20221
$’000
-
-
(28)
(17)
(445)
11,879
14
7
10
11,9910
20220
$’000
510
323
The Company has a cash-backed bank guarantee facility in place up to a value of $510 thousand. At 30 June the
facility was drawn to $510 thousand. The amounts drawn under the facility relate to ML5542 (QLD).
Page | 34 – 2021 Annual Report
NNotes to the Consolidated Financial Statements (continued)
8. CAPITAL AND RESERVES
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one
vote per share at shareholder meetings. In the event of winding up of the Company, ordinary shareholders rank after
creditors and are fully entitled to any proceeds of liquidation.
Issued ordinary shares
Issued ordinary shares at the beginning of the period
Ordinary shares issued during the period
Issued ordinary shares at the end of tthe period
2021
2020
315,685,357
51,717,733
3667,4403,,090
315,685,357
-
315,685,357
9.
SHARE BASED PAYMENTS
Shares
During the year ended 30 June 2021, the company granted shares to two key management personnel, in total
300,000 shares were issued for $17,700. The fair value of the share based payments were determined based on the
market price for the shares as at the grant date.
Options
No options have been issued during the current or prior periods. There were no options outstanding at either 30th
June 2021 or 30th June 2020.
Rights
The following share rights were outstanding as at 30th June 2021:
As at 30tth JJune
2021
2019 Performance
Rights
Expiry date
Vesting date
Share Price Required to Vest:
26/09/2020
26/08/2020
$0.17
Rights on issue at start of year
1,310,000
Rights issued during the year
Rights exercised during the
year
-
-
Rights expired during the year
(1,310,000)
Rights on issue at end of year
-
The 2019 performance rights were issued as part of the Company’s Long Term Incentive Plan. The remaining rights at 1
July 2020 were granted on 27 August 2018 and valued using an appropriate valuation methodology at grant date with
fair value of 6.81 cents per performance right. The remaining rights expired unvested on 26 September 2020.
In accordance with AASB 2 Share-Based Payments, the fair value of the Rights were recognised through profit or loss. An
expense of $108,000 was recognised through profit or loss in the year ended 30 June 2020 with respect to these rights
which is included in the directors’ remuneration.
2021 Annual Report - Page | 35
NNotes to the Consolidated Financial Statements (continued)
The following share rights were outstanding as at 30th June 2020:
2017 PPerformance
Rights
2019 Performance
Rights
2019 Performance
Rights
2019
Retention Rights
As at 30tth JJune 2020
Expiry date
Vesting date
Share Price Required to Vest:
22/10/2019
22/09/2019
$0.15
26/09/2020
26/08/2020
$0.17
02/05/2021
02/04/2021
$0.17
02/05/2021
02/04/2021
$0.00
Rights on issue at start of year
2,685,906
1,590,000
750,000
750,000
Rights issued during the year
Rights exercised during the
year
Rights cancelled /lapsed
during the year
Rights on issue at end of year
-
-
-
-
-
-
-
-
(2,685,906)
-
(280,000)
1,310,000
(750,000)
-
(750,000)
-
10.
FINANCIAL INSTRUMENTS AND RISK EXPOSURES
(a) Financial risk management objectives
The Group does not enter into or trade financial instruments, for speculative purposes. As at 30th June 2021 the
Group has no exposure to exchange rate risk and has no derivative exposures to commodity prices.
(b)
Interest rate risk exposure
The Group has exposure to future interest rates on investments in fixed and variable-rate deposits. As at 30th
June 2021 the Group had $1.370 million invested in such deposits (2020: $2.137 million). The Group does not
use derivatives to mitigate these exposures.
Sensitivity Analysis
For the year ending 30th June 2021, a 1 percent increase in the effective interest rate would have resulted in an
increase in profit of $0.014 million (2020: $0.032 million).
(c) Credit risk exposures
The Group does not have significant credit exposure to outstanding receivables or investments due to the
present nature of its operations. There have been no historical impairment losses.
Cash and cash equivalents comprise cash balances and call deposits with original maturities of three months or
less.
(d) Capital management
The Board seeks to maintain a strong capital base sufficient to maintain the future development of the Group’s
business. The Board closely monitors the Group’s level of capital so as to ensure it is appropriate for the
Group’s planned level of activities. There were no changes to the Group’s approach to capital management
during the year. Neither the Company nor its wholly owned subsidiaries are exposed to any externally imposed
capital requirements.
(e) Liquidity Risk Management
The Group manages liquidity risk by maintaining adequate cash reserves and by continuously monitoring
forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
Page | 36 – 2021 Annual Report
NNotes to the Consolidated Financial Statements (continued)
(f) Net fair values of financial assets and liabilities
Net fair values of financial assets and liabilities not readily traded in an organised financial market are
determined by valuing them at the present value of contractual future cash flows on amounts due from
customers (reduced for expected credit losses) or due to suppliers. Cash flows are discounted using standard
valuation techniques at the applicable market yield having regard to the timing of the cash flows. The carrying
amounts of bank term deposits, trade debtors, other debtors and accounts payable approximate net fair value.
The financial assets and financial liabilities included in assets and liabilities approximate their net fair values.
Cash assets are readily traded on organised markets in a standardised form. All other financial assets and
liabilities are not readily traded on organised markets in a standardised form.
11.
LEASES
Operating lease rentals are payable/receivable as follows:
Payable to third parties
Less than one year
Between one and five years
More than five years
Expensed during the year
2021
$’’000
2020
$’’000
-
-
-
28
-
-
-
57
Operating lease rentals relate to corporate and site offices and accommodation. At the end of the reporting period,
the Company had an operating lease relating to its Corporate office. The lease terminated at the end of February
2020. From March 2020, the lease reverted to a rolling monthly arrangement which may be terminated by either
the Company or the lessor by giving 30 days’ notice. This meets the definition of a short-term lease. The lease
amount payable per month is $2.5 thousand.
12. RELATED PARTIES
The key management personnel compensation is as follows:
Short-term employee benefits
Other long-term benefits
Termination benefits
Executive share options benefits
Employee benefits
2021
$’000
2020
$’’000
654
45
-
18
717
1,038
55
58
108
1,259
Individual director and executive compensation disclosures
Information regarding key management personnel compensation is provided in the Remuneration Report in section
5 of the Directors’ Report.
During the year, Centrex Metals entered into a convertible securities agreement with Australia New Zealand
Resources Corporation Pty Ltd (a director related entity of Graham Chrisp) on 23 March 2021. However the effective
date of the note is 2 June 2021, this is the date the convertible note was issued and $1,000,000 funds received. The
interest rate is at 12% per annum which accrue and compound on first day of each calendar month. As at 30 June
2021, $10,000 interest has been paid in relation to the convertible notes. The convertible notes will convert to shares
at $0.022 and options at $0.05.
2021 Annual Report - Page | 37
NNotes to the Consolidated Financial Statements (continued)
Key Management Personnel Holding of Shares:
The movement during the reporting period in the number of ordinary shares in Centrex Metals Limited held, directly,
indirectly or beneficially, by each key management person, including their related parties, is as follows:
Opening
Balance
Number
granted as a
share based
payment
Issued on
Vesting
Ceased as
KMP
Number
Sold
Closing
Balance
Graham Chrisp
(i)
Mr Robert Mencel
Dr A J Parker
Peter Hunt
Mr Peter Cox
Davild Klingberg
(ii)
Mr Alastair Watts
2021
110,905,672
110,905,672
-
-
-
-
-
-
-
-
2,042,810
2020
2021
2020
2021
2020
2021
2021
2020
2021
2020
2021
2020
-
-
100,000
-
-
-
-
-
-
-
-
-
200,000
487,711
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,042,810)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(487,711)
110,905,672
110,905,672
100,000
-
-
-
-
-
-
-
N/A
200,000
-
(i)
(ii)
Dapop Pty Ltd is an entity associated with Mr Graham Chrisp, Mr Jason Chrisp and Mr Ben Chrisp.
Patna Properties Pty Ltd is a company associated with Mr David Klingberg AO who retired effective 17 December 2019.
Key Management Personnel Holding of Options & Rights:
The movement during the reporting period in the number of options and rights over ordinary shares in the
Company held, directly, indirectly or beneficially, by each key management person, including their related parties,
is as follows:
30th JJune 2021
Holding at 30tth
Jun 220
Issued
Exppired
Holding at 30tth
Jun 221
2019 Performance Rights
Expiring: 26/09/20; Share hurdle: $0.17
Mr Mark Terry *
Mr Alastair Watts
Mr Gerard Bosch
Total
750,000
280,000
280,000
1,310,000
-
-
-
-
(750,000)
(280,000)
(280,000)
(1,310,000)
-
-
-
-
*
Mr Terry was made redundant during the period and under the terms upon which the 2019 performance rights were issued, the rig hts did
not lapse upon termination of employment.
Page | 38 – 2021 Annual Report
NNotes to the Consolidated Financial Statements (continued)
30th JJune 2020
Holding at 30tth
Jun 199
Issued
Exppired ((E) or
Lapsed (LL)
Holding at 30tth
Jun 220
2019 Performance Rights
Expiring: 26/09/20; Share hurdle: $0.17
Mr Mark Terry *
Mr Alastair Watts
Mr Gerard Bosch
Total
750,000
280,000
280,000
1,310,000
-
-
-
-
-
-
-
-
750,000
280,000
280,000
1,310,000
*
Mr Terry was made redundant during the period and under the terms upon which the 2019 performance rights were issued, the rig hts did
not lapse upon termination of employment.
No other options or rights were granted to key personnel during the reporting period as compensation.
13. CONTINGENT ASSETS
On 22nd March 2018 the Group executed agreements to sell the Wilgerup iron ore project and Kimba Gap iron ore
project to SIMEC Mining (formerly Arrium Mining) which is a business of OneSteel Manufacturing Pty Ltd (“OMPL”).
OMPL will pay royalty streams to Centrex upon commencement of mining at each project. The royalties are capped
to a value of A$ 5 million for each project. The per tonne royalty rates and the royalty caps are both indexed annually
to CPI (from 2018). If OMPL has not committed to mining either of the projects by the 10th anniversary of the
executed agreement the relevant project will be returned at Centrex’s election.
14. COMMITMENTS AND CONTINGENT LIABILITIES
Minimum exploration tenement expenditures
In order to maintain its right of renewal of tenements (reviewed on a regular basis), the Group is required to meet
exploration expenditures as defined at the time of the granting of the tenements. The tenement commitments are
listed in detail in Section 10 of the Directors’ Report. A summary of these commitments is as follows:
Ardmore (QLD) -- PPhosphate
Tenements with annual commitments
Goulburn (NSW) –– ZZinc
Tenements with annual commitments
Oxley (WA) –– PPotassium Nitrate
Tenements with annual commitments
2021
$’’000
2020
$’’000
9
675*
-
105
675*
142
*
The annual commitments for the New South Wales tenements are an estimate of the work program to which
the Group has committed to undertake over the term of the licence.
Other commitments
At 30th June 2021 the Group had no other commitments (2019: NIL).
Contingent Liability
On 2nd February 2017 the Group executed agreements to purchase the Ardmore phosphate rock project from
Southern Cross Fertilisers Pty Ltd (“SCF”), a wholly owned subsidiary of Incitec Pivot Limited. Under the terms of the
agreements SCF retain an interest in the project via a 3% gross revenue royalty secured by a registered mortgage
over the mining lease (ML 5542). The first ranking security over ML 5542 also secures other monetary and non-
monetary obligations associated with the agreements including:
2021 Annual Report - Page | 39
NNotes to the Consolidated Financial Statements (continued)
(cid:120) SCF is entitled to receive 50% of the residual profit of a sale of in excess of a 70% interest in ML 5542 if the
transaction takes place within four years from completion (27th June 2017). In such case SCF will forego its 3%
gross revenue royalty.
(cid:120) The Group must pay to SCF a $2 million annual agreement extension fee at the beginning of each year from 27th
June 2021 if it has not commenced Mining as defined in the agreements. Refer to note 20 for an update on this
contingent liability.
(cid:120) SCF have the right to require ML 5542 be returned to them under certain Breach Events as defined in the
transaction agreements with consideration payable to the Group being the lesser of tenement costs incurred by
the Group, including acquisition costs, and market value.
15. NOTES TO THE STATEMENT OF CASH FLOWS
(a) Reconciliation of Cash
For the purpose of the Consolidated Statement of Cash Flows, cash includes cash on hand and at bank, net of
outstanding bank overdrafts. Cash at the end of the financial year, as shown in the Consolidated Statement of
Cash Flows, is reconciled to the related items in the Consolidated Statement of Financial Position as follows:
NOTE
2021
$’’000
2020
$’’000
Cash and cash equivalents
1,331
437
(b) Reconciliation of cash flows from operating activities
Loss after income tax
Interest income
Depreciation
Reversal of previous year land impairment
Share/options valuation
Exploration expenditure written off and other JV asset impairments
Change in fair value of convertible note
Profit on disposal of plant and equipment
Other
(Increase) / decrease in debtors
Increase / (decrease) in provisions
(Increase) / decrease in tax refund
Increase / (decrease) in payables
Net cash used in operating activities
2021
$’000
2020
$’’000
(2,627)
(19,821)
(8)
12
-
18
45
1,794
-
(55)
107
(79)
-
(131)
((924))
(50)
14
-
108
18,466
-
(9)
1
(48)
(119)
-
(805)
((2,263)
16. PARTICULARS IN RELATION TO CONTROLLED ENTITIES
The Company holds 100% interest in the following controlled subsidiaries:
(cid:120)
(cid:120)
South Australian Iron Ore Group Pty Ltd;
(cid:120) DSO Development Pty Ltd;
Flinders Pastoral Pty Ltd;
(cid:120)
Lachlan Metals Pty Ltd;
(cid:120) Centrex Phosphate Pty Ltd (previously named
(cid:120) Kimba Gap Iron Project Pty Ltd;
Sturt Pastoral Pty Ltd);
(cid:120) Centrex Potash Pty Ltd; and
Page | 40 – 2021 Annual Report
NNotes to the Consolidated Financial Statements (continued)
(cid:120) Centrex QLD Exploration Pty Ltd (previously
named Port Spencer Holdings Pty Ltd);
(cid:120) Centrex Zinc Pty Ltd.
17. SEGMENT REPORTING
The Group operates in one business segment; mineral exploration and one geographical segment; Australia.
18. PARENT ENTITY DISCLOSURES
As at, and throughout the year the parent company of the Group was Centrex Metals Limited.
Result of the parent entity
Profit / (Loss) for the period
Other comprehensive income
Total ccomprehensive income / (loss) for the period
Financial position of the parent entity
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Equity of the parent entity
Contributed equity
Share options issues
Accumulated losses
Total equity
Company
20211
$’000
20220
$’000
(2,581)
-
(1,355)
2,583
2,583
3,407
3,407
(824)
42,564
-
(43,388)
(88244)
(1,355)
-
(1,355)
2,324
2,336
301
312
2,024
41,351
2,647
(41,974)
2,,024
Commitments and contingent liabilities of the parent entity
The commitments and contingent liabilities of the parent entity are the same as those identified at note 14.
19. DERIVATIVE FINANCIAL INSTRUMENTS
Convertible notes payable - shares
Convertible notes payable - options
Total comprehensive income / (loss) for the period
Company
2021
$’000
20220
$’000
1,565
1,229
2,794
-
-
-
During the year, Centrex Metals entered into a convertible securities agreement with Australia New Zealand
Resources Corporation Pty Ltd (a director related entity of Graham Chrisp) on 23 March 2021. However the effective
date of the note is 2 June 2021, this is the date the convertible note was issued and $1,000,000 funds received.
2021 Annual Report - Page | 41
NNotes to the Consolidated Financial Statements (continued)
The interest rate is at 12% per annum which accrue and compound on first day of each calendar month. As at 30
June 2021, $10,000 interest has been paid in relation to the convertible notes.
In order to classify this note, the Group assessed AASB 9 and made assessment that the notes were derivative in
nature as all characteristics under this section were met.
The fixed for fixed test per AASB 9 was then consequently assessed to determine whether the notes were of an
equity or liability in nature. The conversion price is $0.022 for Shares and $0.05 for Options. IF the daily VWAP is less
than Base price of $0.022 at any time during the term of the agreement, the conversion price reduces to that VWAP.
Per the terms of the note, the continued variable nature of the conversion price and hence number of shares issued
on conversion, indicates that the fixed for fixed test as noted above was failed and notes have been recognised as a
financial liability within the scope of AASB 9.
The Group have valued the conversion feature using Monte Carlo and the conversion options using Black Scholes
model. The models calculate the convertible notes value using the following inputs:
• valuation date – 30 June 2021
• share price at valuation date- $0.048
• expiry date- 31 December 2023
• risk free rate- 0.14%
• company-specific volatility – 100%
• strike price- $0.05; and
maximum expected life- 2.5 years.
The fair value of the conversion feature and options was $2.794 m as at 30 June 2021. The change in fair value of
conversion is recognised in statement of profit loss during the year amounting to $1.794 m.
20. EVENTS SUBSEQUENT TO BALANCE DATE
On the 1st September 2021 the Company took pleasure in announcing that current Centrex CEO Mr Robert Mencel
had been appointed by the Board as it’s Managing Director.
On the 17th September 2021 the Company went into trading halt after the Company received an invoice from
Southern Cross Fertilisers Pty Ltd (“SCF”), a wholly owned subsidiary of Incitec Pivot Limited (the Royalty Holder)
requesting payment of the Extension Fee.
The Board has subsequently sought and obtained legal advice regarding the validity of the invoice.
The Company believes that the mining of more than 27,000 tonnes of ore during February 2021 and the commercial
sale of phosphate rock has met the Royalty Deed’s definition of the commencement of Mining and can see no other
possible interpretation. The board has therefore determined to emphatically reject the request for payment of the
Extension Fee.
The Company looks forward to the matter being resolved in good faith and will keep the market informed on any
developments.
Page | 42 – 2021 Annual Report
NNotes to the Consolidated Financial Statements (continued)
Directors’ Declaration
In the opinion of the Directors of Centrex Metals Limited (‘the Company’):
1
(a)
the consolidated financial statements and notes set out on pages 22 to 42, and the Remuneration report
in the Directors' Report, are in accordance with the Corporations Act 2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30th June 2021 and of its
performance, for the financial year ended on that date; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
The Directors have been given the declarations by the Executive Chairman for the financial year ended 30th June
2021 pursuant to Section 295A of the Corporations Act 2001.
The Directors draw attention to Note 1(a) of the financial statements, which includes a statement of compliance
with International Financial Reporting Standards.
2
3
Signed in accordance with a Resolution of the Board of Directors:
Mr Robert Mencel
Dated at Adelaide this 29th day of September 2021
2021 Annual Report - Page | 43
Level 3, 170 Frome Street
Adelaide SA 5000
Correspondence to:
GPO Box 1270
Adelaide SA 5001
T +61 8 8372 6666
Independent Auditor’s Report
To the Members of Centrex Metals Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Centrex Metals Limited (the Company) and its subsidiaries (the Group), which
comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit or loss
and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows
for the year then ended 30 June 2021, and notes to the consolidated financial statements, including a summary of
significant accounting policies, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
a giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its performance for the year
ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1 in the financial statements, which indicates that the Group incurred a net loss of $2,627,000
during the year ended 30 June 2021. As stated in Note 1, these events or conditions, along with other matters as set forth in
Note 1, indicate that a material uncertainty exists that may cast doubt on the Group’s ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter
How our audit addressed the key audit matter
Exploration and evaluation assets – Note 6
At 30 June 2021, the carrying value of exploration and
evaluation assets was $11,910,000.
In accordance with AASB 6 Exploration for and Evaluation
of Mineral Resources, the Group is required to assess at
each reporting date if there are any triggers for impairment
which may suggest the carrying value is in excess of the
recoverable value.
The process undertaken by management to assess whether
there are any impairment triggers in each area of interest
involves an element of management judgement.
This area is a key audit matter due to the significant
judgement involved in determining the existence of
impairment triggers.
Derivative Financial Instruments – Note 19
In March 2021, the Company issued convertible notes to a
Director related entity with a face value of $1.0 million.
Accordingly, management must consider the classification
of the notes and consider their fair value in accordance with
AASB 132 Financial Instruments: Presentation and AASB 9
Financial Instruments, respectively.
The assessments associated with the classification and
measurement of the instrument can be complex and involve
management judgement. These judgements include:
(cid:120) whether the instrument included an embedded or
standalone derivative to be separately accounted for;
Our procedures included, amongst others:
(cid:120) obtaining the management reconciliation of capitalised
exploration and evaluation expenditure and agreeing to the
general ledger;
(cid:120)
reviewing management’s area of interest considerations
against AASB 6;
(cid:120) conducting a detailed review of management’s
assessment of trigger events prepared in accordance with
AASB 6 including;
(cid:16)
tracing projects to statutory registers, exploration
licenses and third party confirmations to determine
whether a right of tenure existed;
(cid:16) enquiry of management regarding their intentions to
carry out exploration and evaluation activity in the
relevant exploration area, including review of
management’s budgeted expenditure;
(cid:16) understanding whether any data exists to suggest that
the carrying value of these exploration and evaluation
assets are unlikely to be recovered through
development or sale;
(cid:120) assessing the accuracy of impairment recorded for the
year as it pertained to exploration interests;
(cid:120) evaluating the competence, capabilities and objectivity of
management’s experts in the evaluation of potential
impairment triggers; and
(cid:120) assessing the appropriateness of the related financial
statement disclosures.
Our procedures included, amongst others:
(cid:120) obtaining the convertible loan agreement to understand the
terms and conditions of the convertible notes;
(cid:120) assessing the appropriateness of management’s
classification of the financial instruments in accordance
with AASB 132;
(cid:120) assessing management’s conclusions on identification of
the separate components implied within the instrument;
(cid:120) evaluating reasonableness of fair value assigned to each
component at initial recognition of the instrument;
Key audit matter
How our audit addressed the key audit matter
Derivative Financial Instruments – Note 19
(cid:120) determining the appropriate classification of the
(cid:120) assessing the measure of fair value at the reporting date
instrument within the financial statements as defined in
accounting standard AASB 132;
for each component; and
(cid:120) assessing the adequacy of disclosures in the financial
(cid:120) determining the fair value upon initial recognition of the
statements.
instrument, considering the following:
(cid:16)
(cid:16)
instrument as a whole;
liability component;
(cid:16) conversion feature; and if applicable
(cid:16) derivative component;
(cid:120) determining the fair value of each component at 30 June
2021
This is a key audit matter due to management judgements
and valuation complexities of the instruments.
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included in the
Group’s annual report for the year ended 30 June 2021, but does not include the financial report and our auditor’s report
thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors’ for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Company’s/Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless the Directors either intend to liquidate the Company/Group or to cease operations, or have no realistic alternative but to
do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf. This description forms part of
our auditor’s report.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in the Directors’ report for the year ended 30 June 2021.
In our opinion, the Remuneration Report of Centrex Metals Limited, for the year ended 30 June 2021 complies with
section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report,
based on our audit conducted in accordance with Australian Auditing Standards.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
J L Humphrey
Partner – Audit & Assurance
Adelaide, 29 September 2021
ASX Additional Information (unaudited)
Additional information required by the Australian Securities Exchange Limited Listing Rules and not disclosed
elsewhere in this report is set out below.
Substantial Shareholders of Ordinary and Escrow shares
Rank
Name
299th SSeptember 220211
1
2
3
4
5
DAPOP PTY LTD
WISCO INTERNATIONAL RESOURCES DEVELOPMENT &
INVESTMENT LIMITED
BAOTOU IRON & STEEL (GROUP) COMPANY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
HONGMEN PTY LTD
Distribution of equity holders
Name
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Units
110,905,672
40,399,599
21,900,000
14,744,107
14,000,000
% of Issued
Capital
30.186%
10.996%
5.961%
4.013%
3.811%
299th SSeptember 220211
Fully paid
ordinary and
escrow shares
Employee
options / rights
plan
74
97
288
690
228
1,377
-
-
-
-
-
-
At 29th September 2021 there were 1,377 holders of a total of 367,403,090 fully paid ordinary shares and there were
62 shareholders holding less than a marketable parcel.
The issued capital of the Company is fully paid ordinary shares (entitling the holders to participate in dividends and
the proceeds on winding up of the Company in proportion to the number of shares held). On a show of hands every
holder of the shares present at a meeting in person or by proxy is entitled to one vote and upon poll each share
counts as one vote.
Page | 48 – 2021 Annual Report
NNotes to the Consolidated Financial Statements (continued)
Top 20 Holders of Ordinary and Escrow shares
Rank
Name
299th SSeptember 220211
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
DAPOP PTY LTD
WISCO INTERNATIONAL RESOURCES DEVELOPMENT &
INVESTMENT LIMITED
BAOTOU IRON & STEEL (GROUP) COMPANY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
HONGMEN PTY LTD
MS LEE LUANG YEO
MR MELVIN BOON KHER POH
KNT INTERNATIONAL CO LTD
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
CITICORP NOMINEES PTY LIMITED
GERARD ANDERSON SUPER PTY LTD
MR EWE GHEE LIM & MISS CHARLENE YULING LIM
BNP PARIBAS NOMINEES PTY LTD
MRS JULIE AVOTINS
AMALGAMATED DAIRIES LIMITED
MR YAM POEY CHEW
MR DIETER URMERSBACH & MRS ROSMARIE URMERSBACH
MR KA FAI MARTIN WONG
PATNA PROPERTIES P/L
MR DAVID CAMPBELL
Units
110,905,672
40,399,599
21,900,000
14,744,107
14,000,000
7,090,210
5,782,404
5,535,000
4,821,996
4,562,524
3,990,000
3,750,000
3,606,633
3,511,767
2,617,327
2,500,000
2,455,759
2,126,455
2,042,810
1,970,006
258,312,269
% of Issued
Capital
30.186%
10.996%
5.961%
4.013%
3.811%
1.930%
1.574%
1.507%
1.312%
1.242%
1.086%
1.021%
0.982%
0.956%
0.712%
0.680%
0.668%
0.579%
0.556%
0.536%
70.308%
2021 Annual Report - Page | 49
Company Directory
Company Secretaries
Australian Securities Exchange
Mt Jonathan Lindh, appointed 27th March 2021
The Company listed on the Australian Securities
Exchange on 17 July 2006. The Home exchange is
Adelaide.
ASX Codes
Shares: CXM
Auditors
Grant Thornton Australian Ltd
Grant Thornton House
Level 3, 170 Frome Street
Adelaide SA 5000
Principal Registered Office
Centrex Metals Limited
Level 6, 44 Waymouth Street
Adelaide SA 5000
08 8213 3100
08 8231 4014
www.centrexmetals.com.au
Locations of Share Registries
Boardroom Pty Limited
Level 7, 207 Kent Street
Sydney NSW 2000
GPO Box 3993
Sydney NSW 2001
Telephone:
(02) 9290 9600
Fax:
Email:
Web:
(02) 9279 0664
enquiries@boardroomlimited.com.au
www.boardroomlimited.com.au
Page | 50 – 2021 Annual Report
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